§ 25-9-340. Effectiveness of right of recoupment or setoff against deposit account. - North Carolina Statutes

SUBPART4. Rights of Banks.

§ 25‑9‑340. Effectiveness of right of recoupment or setoff against deposit account.

(a)        Exercise ofrecoupment or setoff. – Except as otherwise provided in subsection (c) of thissection, a bank with which a deposit account is maintained may exercise anyright of recoupment or setoff against a secured party that holds a securityinterest in the deposit account.

(b)        Recoupment orsetoff not affected by security interest. – Except as otherwise provided insubsection (c) of this section, the application of this Article to a securityinterest in a deposit account does not affect a right of recoupment or setoffof the secured party as to a deposit account maintained with the secured party.

(c)        When setoffineffective. – The exercise by a bank of a setoff against a deposit account isineffective against a secured party that holds a security interest in thedeposit account which is perfected by control under G.S. 25‑9‑104(a)(3),if the setoff is based on a claim against the debtor. (2000‑169,s. 1.)